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C in E Mati • TRADE MEWS • Astral Saves First Choice by Taking Controlling Interest: Reactions MONTREAL - on Oct

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C in E Mati • TRADE MEWS • Astral Saves First Choice by Taking Controlling Interest: Reactions MONTREAL - on Oct C IN E MAti • TRADE MEWS • Astral saves First Choice by taking controlling interest: reactions MONTREAL - On Oct. 25 , First 14,585 preferred sh ares). Equal pendent Pay Television Ltd. nadian Association of Motion CRTe's "established policy on Choice Canadian Communica­ partners in Abgreen are the (Superchanneli asked that the Picture Producers (CAM PP), vertical integration" and would tions asked the CRTC to con­ families of Harold Greenberg, hearing be put off until Nov. 29 the Directors Guild of Canada, give an "unfair advantage to sider its request to transfer and brothers Ian, Sidney and when the situ ation of the re­ the Association of Canadian one competitor in the Canadian controlling interest in the pay­ Harvey. At the end of the tran­ gionals - many in dire straits - Film Craft speople (ACFC) a nd entertainment and communi­ TV company to a -group domi­ sacti on, Hees would own 15% is to be considered. They ac­ the Canadian Film Editors Guild cations marketplace, making nated by the Bronfman and of First Choice stock and Astral cused the CRTC of given prefe­ claimed that approval of the all others vulnerable to it." The Greenberg families, touching Be llevue Pathe would own rential treatment to the First request would violate the (cont. on page 39) off a flurry of lawyers' le tters, 43.7%. Choice situation. First Ch oice telegrams and position papers On Oct. 28, the CRTC issued parried the next day, refuting unlike anything seen since the public notice of a hearing to be Allarcom's accusations. First introduction of pay-TV in Ca­ held Nov. 10, as the financial Choice reiterate d that it was Search for genuine consensus nada. By Nov. 16, the CRTC had situation of First Choice was not asking for any changes in approved the request. criti cal : rumors had been rife the terms of its license, counter­ In the formal request, First in the industry that the com­ ing that the applications to be about Canadian definition Choice asked permission to pany would be bankrupt by heard Nov. 29 a ll d ealt with issue a $8.4 million convertible Christmas. Efforts to raise amendments of lice nses. OTTAWA - The Canadian Cinema Canada No. 100) sug­ debenture, which would entitle monies by public offering and Some 90 te legrams poured Radio-television and Telecom­ gested a point-system forCana­ the holders to 58.5% of the voting then by private means had fail­ in, 70 in favor, 20 against. Of munications Commission dian content certification and , shares of First Choice. The ed, and lay-offs and program­ those included in the CRTe's (CRTC) is expected to give attempted to come to grips , "holders" were to become ming freezes exacerbated the public file, a ll emanating from public notice shortly that the w ith co-ventures (non-treaty Hees International Corpora­ situation. Toronto asked that the hearing Jan. 3 deadline for the new co-productions). The 49 respon­ tion, wholly owned by the fa­ Almost every film organiza­ be postponed w hile all those Canadian content te levision ses to the proposed guidelines milies of Peter and Edward tion and many individuals from Montreal (with the excep­ programming certification pro­ from the production industry­ Bronfman, and Astral Bellevue mobilized to make the CRTC ti on of Sonolab, a competitor of posals announced Aug. 15 w ill "a lot of people have worked Pathe Inc. owned via Bellevue aware of their va rious points of Astral in post-production) be postponed to April 1, 1984. very hard and often at short notice to put their points of Photo Labs by the Bronfmans view. Most vociferous was urgued the CRTC to proceed One reason for the postpone­ (100% Class A common shares Supe rchanneL First Choice's with all haste. A letter jointly ment, according to CRTC sour­ v iew across admirably", says and 14,585 preferred Shares) competitor in Ontario. On No v. signed by the Alliance of Cana­ -ces, was the delay caused by Mongeau - pointe d to the need for further discussion, parti­ and Abgreen Holdings Ltd. 1100% 1, lawyers writing on behalf of dian Cinema, Television and the Commission's recent chan­ cularly on the issue of co-ven­ Class B common shares and Allarcom and Ontario Inde- Radio Artists (ACTRA ), the Ca- ge of chairme n . Another rea­ son, according to CRTC com­ tures. missioner Jean-Pierre Mongeau "We expect, pending the who is chairing the Commis­ Commission's approval, to s ion's Canadian content panel, convene the parties concerned Vertical integrat.ion curbed in CRTC decision for another round of consulta­ tlOns ; role has been restricted to one reflects the CRTe's desire for OTTAWA - Five pages of the • Astral will not produce analogous to the role played by "a genuine consensus" through­ tion that w ill focu s on co-ven­ Canadian Radio-television and film-video production to be any pay-TV lice nsee, namely out the Canadian program tures or on other items where Tele-communications Com- licensed to First Choice ; financial arrangements. Fur­ production industry. there are seriou s diver;gences mission's 12-page decision al- • Astral will continue to thermore that control is rein­ "Basically what we're look­ of opinion," Mongeau told lowing Astral Bellevue Pathe of provide financial assistance to forced through consultation ing at are the terms under Cinema Canada. Toronto and Hees International non-the atrical products and in with indepe nde nt producers which Canadian television Earlier this year a one-day I Corp. to take effective control particular Canadian pay-tele- and regular reporting of pro­ programming will be produced intra-industry workshop on Canadian content with the of First Choice Canadian Com- vision programming proposed jects licensed. for the next two to five years," munications Corp. consist of from Canadia n producers on a • In distribution, similar Mongeau told Cinema Canada. CRTC "allowed us to obtain a range of view-points in one day conditions. non-discriminatory basis ; writte n cntrols plus consulta- "That's w hy we don't want that would have taken five Among the conditions li sted • Astral will not make its tions with independe nt distri- to make any mistakes. Only days had we had to call a - and not yet available to th e financial support conditional butors' associations and re­ through a third round of dis­ public hearing. It was the first I publiC at presstime - Cinema on the involvem ent of First porting back to the CRTe. In cussions will we be able to time the Commission had used Cana da h as learned that : Choice ; addition, by making Astra l pre- arrive at a genuine consensus." • Only 6 of the 14-member view copies of films available this method of consultation," First Choice board can b e nom- • At the time Astral informs to all pay-licensees, the Com- The Aug. 15 proposals (see commented Mongeau. inated by the Astral-Hees the pay-lice nsees of the avail- mission hopes to add a further group ; two of the six must ability of a film, Astral will control against the poss ibility come from outside Astral- provide a ll pay-licensees with of exclusive windows for Astral Pre-sales no longer reduce investor risk Hees ; a high quality videotape copy produc t. • The First Choice board on demand, to a llow each li- • In post-production, Astral's TORONTO - Communications This is a change for which must be expanded to include a censee to program a pay-win- post-production facilities must minister Francis Fox has an­ the industry lobbied ardently representative from British dow without Astral being privy deal on a tariffed rate-card nounced changes in the In­ duMng the period of the 100% Columbia and additional re- to the program schedule ; bas is. come Tax Act which w ill a llow capit.a l cost allowance. Failure presentation from the Atlantic • All preview rights for 20th In practice the CRTC cannot inv~stors in Canadian produc­ to allow presales was often provinces; Century Fox product now held change the conditions of license tions w hich have received pre­ cited as one of the reasons • No change s in First Choice by Astra l will revert back to once that license has been sales from Canadian broad­ the films made during that senior management can be Fox ; issued - and First Choice's casters - as is required to be pe riod fared so poorly in the made without the approva l ofa • Astral will treat all pay-TV license does not come up for eligible for the Broadcast Pro­ marketplace. 3-person subcommittee, two licensees including First Choice renewal until 1987. However gram Development Fund - to The minister also announced members of which shall be on a non-exclusive and non- by permitting a change in still qualify for tax write-offs the minimum amount to be appointed by Astral-Hees ; discriminatory basis ; ownership, the CRTC has creat- under the capital cost allow­ paid in a given year in order to • The management and • Semi-annual consultation ed "a precedent subject to its ance. qualify for the capital cost program acqu isition staff of must take place between First own authoriziation." If in the Formerly, films and TV pro­ allowance has been reduced First Choice must remain "en- Choice and independent pro- Commission's opinion there gram s needed to be completely from 20 percent to five percent. tirely separate" from Astral ducers and distributors' asso- are abuses in these preceden­ at risk to qualify, ruling out pre­ Fox announced the changes and must report to the First ciations, with copies of the tial conditions of ownership, sale agreements.
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